Tether, the founder and owner of the USDT cryptocurrency, is developing a new stablecoin that will be provided with goods like gold and oil.
Tether plans to release a new stablecoin
The shareholder of the Bitfinex cryptocurrency exchange (Tether sister company) Zhao Dong, told the Cointelegraph news outlet about that Tether plans to release a new stablecoin. The coin will be provided with goods like gold, oil and rubber. This will "mitigate the risks associated with storing large amounts of fiat currencies in bank accounts."
Dong also said that USDT – the Tether dollar stablecoin – is backed by at least 83.75% of the US dollar. The remainder of the collateral comes from Bitfinex's loan obligations to Tether.
Interesting in the section: Tether, as an analog of the dollar
- USDT must be secured by the US dollar in a ratio of 1 to 1. This means that the price of one USDT is equal to $1. Tether keeps collateral in bank accounts. At least that's what the company claimed earlier
- The crypto community is skeptical of this, demanding from the company evidence like an audit of reserves
- Tether did not conduct an audit, but at the beginning of 2019 stated that its reserves were not necessarily secured by the US dollar by 100%, which caused another wave of criticism from the crypto community
- According to the company, part of the reserves is a loan of $650 million, which Tether issued to the Bitfinex crypto exchange. These companies have the same owner
- Now the capitalization of USDT exceeds $4 billion
- In mid-August, Dong announced that Tether is developing a stablecoin supported by the Chinese yuan
Editor: Alex Riabukha